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A question of money

Safe havens give peace of mind over euro fears

AW writes from Dublin: I have instalment savings and a deposit account at
An Post that I use to pay my college fees for a son studying in Britain. I
was horrified to read your view that State Savings could be at risk if
Ireland defaulted on its national debt (Risk management, May 27). Could you
advise on the safest place for my meagre savings?

It certainly wasn’t my intention to horrify anyone. Those with money in State
Savings need to realise, though, that they would be in a very uncertain
position if Ireland was to default because their savings form part of the
national debt.

Default would probably be the result of Ireland leaving the euro or if the
currency union broke up. Reverting to a national currency would almost
certainly result in severe devaluation of Irish savings, even those that do
not form part of the national debt.